George Soros is widely known today for his expertise in investing and incredible success as a businessman. This success has left him with one of the most massive personal fortunes in the world. In fact, George Soros is now one of the thirty richest individuals in the world. While there is plenty of talk about George Soros in the mainstream media, very few people have actually taken the time to learn the story behind one of Soros’ most famous trades in his early career. ValueWalk just released a story on Soros’ famous trade.
The day that George Soros became an international investment phenomenon was September 17, 1992, which is referred to as “Black Wednesday.” The trade involved the position of Great Britain’s currency and George Soros’ ability to bet against its value. George Soros’ ability to foresee what would happen to the currency once it was floated on the exchange earned him billions of dollars along with a new title, “The Man Who Broke the Bank of England.” This all came about because once Britain floated the pound, it instantly fell about 25 percent against the U.S. Dollar. At that time, Soros’ Quantum Fund had an estimated $15 billion ready to bet that Great Britain’s currency would fall once it was floated on the exchange. Soros had literally bet it all on this currency trade and could have lost billions. The fund was entirely leveraged and engaged in widespread borrowing to make its position possible at exactly the right time. On the government’s end on www.georgesoros.com/, a failure to raise interest rates and plan for a potential currency rate drop cost the government of Great Britain an estimated £3.4 billion.
Based on the successful position of the Quantum Fund as the British Treasury almost tanked, the hedge fund grew instantly. Although the hedge fund was valued at around $15 billion before the famous trade, it was immediately worth an estimated $19 billion after. Several months after the trade, the fund grew to an impressive $22 billion. This was truly the starting point of how Soros grew his massive personal fortune. Given that the managers of the hedge fund were entitled to about 20 percent of the incredible growth, George Soros was able to earn his first billion literally overnight from this trade. Because Soros was able to replicate his wise investment strategies, his fortune has continued to grow. He is also widely consulted for his opinion on the state of international markets.
Soros is now known for his philanthropy just as much as his investment success. Through the Open Society Foundations on http://topics.wsj.com/person/S/george-soros/209, Soros works to promote free societies and accountable governments all around the world. Soros is also very involved in progressive causes and supporting liberal political campaigns through generous donations.
Murray born on August 2, 1962, was a private equity investor. Having graduated with a degree in economics from Boston College, he went further with his education and got a master’s degree in Business Administration from Columbia Business School. He was the chief executive officer of CCMP Capital a private equity firm dealing with equity transactions and buyout. Stephen was also a philanthropist who supported charity organizations such as the make a wish foundation and the food bank of lower Fairfield County. He can be best described as a key man clause for the revenue of three billion six hundred million that Stephen Murray CCMP Capital Investors three LP fund that was raised in the year 2015. By being a key man, his death resulted in his firm being restricted from doing new deals until all the investors unanimously determine the direction the company would take.
CCMP Capital Investors mainly deal in upper middle market companies. The firm specializes in buyouts and the growth of equity. Key sectors where the firm invests include consumer retail, telecom media, healthcare, infrastructure, industrial and in the sector financial services. Within the consumer retail services, it focuses on products such as direct marketing, consumer packaged goods and the service industries. With their specialization in areas of interests, the firm focuses on consumer, trade publishing content, cable and wireless communication services in the media and telecom sector. This strategic target helped the company achieve higher profits.
CCMP previously founded as Chemical Venture Partners in nineteen eighty-four has grown from a venture capital arm of a chemical bank into a capital investment bank. The firm changed its name to Chase Capital Partners after the Chemical’s acquisition by the Chase Manhattan Bank. CCMP has over the years changed its names to suit its needs and to factor in the environment. With the integration of private equity organizations, the name changed to JP Morgan Partners. With the name, they went on to acquire Bank one that already had its equity investment group. The equity platform allowed for the spinning out of JP Morgan Chase forming CCMP an acronym for all the names of the company. Stephen Murray on Linked In helped in co-founding CCMP after the splitting, and they made investments in leveraged buyout, venture capital, and growth capital.
With the death of Stephen Murray reported by Wall Street, the firm’s chairman Greg Brenneman is taking the role of the CEO while the company is still undergoing the process of looking for a permanent one. Stephens’s responsibilities have been spread out across the organization to help in the continual of the business. Through active management and the powerful impact that equity investment has, CCMP Capital team has established a world-class reputation as the best investment partner.